Gerresheimer's June Countdown: Errors, Probes, and a €292 Million Divestiture Hanging in the Balance

Gerresheimer shares surge 44% in a month driven by short covering, but remain down 57% yearly amid BaFin accounting probes, high short interest, and a planned Centor sale.

Gerresheimer's share price has clawed back roughly 44% over the past month, a bounce that owes more to short covering than to any fundamental shift in the company's fortunes. The stock closed Thursday at €25.32, still down some 57% over twelve months, and beneath that veneer of relief lies a balance sheet under siege from multiple regulatory probes and accounting red flags.

Germany's financial watchdog, BaFin, widened its investigation in March after finding "specific indications" of possible violations of accounting rules. The probe, originally opened on September 18, 2025, now focuses on at least three questionable positions: leasing liabilities that may have been misstated by €65.5 million, development costs reported inaccurately at €29.4 million, and assets in the Advanced Technologies segment worth €196.5 million whose valuation is under scrutiny. On top of that, a €35 million bill-and-hold transaction has also drawn attention. Separately, the audit oversight body APAS is investigating KPMG, the auditor that signed off on Gerresheimer's 2024 books without qualification.

Short sellers have not fully capitulated despite the recent rally. Arrowstreet Capital trimmed its bearish bet, but overall short interest still sits at 11.4% — well above the twelve-month average. The reluctance is understandable: until the company delivers a clean audited annual report, institutional capital is unlikely to return in force.

Management is racing to meet that deadline. The testated financial statements for 2025 are expected in June, with the half-year report due on July 14. Until those documents are filed, the annual general meeting — originally slated for the end of the second quarter — remains postponed.

To ease its balance sheet strain, Gerresheimer is pressing ahead with the sale of US subsidiary Centor Inc. More than ten prospective buyers have emerged, and Morgan Stanley has been hired to run the process. The target is to close the deal before the end of the calendar year. Centor, which makes packaging systems for prescription drugs, carries a book value of €292 million and generates above-average margins. Divesting it would provide sorely needed cash but also reduce the group's overall profitability. At the same time, the company is shuttering its moulded-glass plant in Chicago Heights and shifting production to Italy and India.

Creditors have given the company room to manoeuvre. Holders of 96% of the €870 million Schuldschein loan agreed to extend the deadline for audited accounts to September 30, 2026, and banks have waived key leverage covenants through the third quarter of next year. That buys time, but it does not fix the underlying issues.

On the operational front, management stands by its full-year forecast: revenue of €2.3 billion to €2.4 billion, adjusted EBITDA margins of 18% to 19%, and modestly positive free cash flow. The order book is described as solid and recent performance has been in line with internal plans. Yet the market's attention remains fixed on the balance sheet rather than the income statement.

The coming weeks represent a decisive inflection point. If the June audit lands without further surprises, the groundwork for a more durable revaluation could be laid. If new problems emerge, short sellers stand ready to rebuild their positions quickly. For now, Gerresheimer is walking a tightrope between a promising divestiture and a regulatory minefield — with the clock ticking toward its most critical test.